Annual Report on Exchange Arrangements and Exchange Restrictions 2005
Chapter

NEW ZEALAND

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
September 2005
Share
  • ShareShare
Show Summary Details

(Position as of December 31, 2004)

Status Under IMF Articles of Agreement
Article VIIIDate of acceptance: August 5, 1982.
Exchange Arrangement
CurrencyThe currency of New Zealand is the New Zealand dollar.
Exchange rate structureUnitary.
Classification
Independently floatingThe exchange rate of the New Zealand dollar is determined on the basis of supply and demand in the foreign exchange market.
Exchange taxNo.
Exchange subsidyNo.
Forward exchange marketYes.
Arrangements for Payments and Receipts
Prescription of currency requirementsNo.
Payments arrangementsNo.
Administration of controlNo.
International security restrictions
In accordance with IMF Executive Board Decision No. 144-(52/51)Measures have been taken to prohibit dealing with or making available to any person assets of the Taliban and of other designated individuals and organizations associated with terrorism, in accordance with the relevant UN Security Council resolutions.
In accordance with UN sanctionsA prohibition has been imposed on dealing with or making available to any person assets of the former government of Iraq, except for transfers to the Development Fund for Iraq or as authorized by the minister of foreign affairs and trade. A prohibition also applies within New Zealand and on New Zealand citizens abroad against dealing with or making available to any persons assets or funds belonging to the former Taylor regime in Liberia, and its associates.
Payments arrearsNo.
Controls on trade in gold (coins and/or bullion)No.
Controls on exports and imports of banknotesUnder the Financial Transactions Reporting Act of 1996, exports and imports of banknotes, coins, and traveler’s checks exceeding $NZ 10,000 or its equivalent require customs documentation (Border Cash Report).
Resident Accounts
Foreign exchange accounts permittedYes.
Held domesticallyYes.
Held abroadYes.
Accounts in domestic currency held abroadYes.
Accounts in domestic currency convertible into foreign currencyYes.
Nonresident Accounts
Foreign exchange accounts permittedYes.
Domestic currency accountsYes.
Convertible into foreign currencyYes.
Blocked accountsYes.
Imports and Import Payments
Foreign exchange budgetNo.
Financing requirements for importsNo.
Documentation requirements for release of foreign exchange for importsNo.
Import licenses and other nontariff measures
Negative listImport prohibitions and restrictions affect some 70 products or classes of products—primarily plants, animals, and products considered dangerous to human health or not in the public interest.
Import taxes and/or tariffsFor nonprimary produce, tariffs apply to imported products that compete with New Zealand’s domestic production. Most primary produce competing with New Zealand’s domestic production is admitted free of tariff. Overall, 95% of imports (by value) are imported free of duty.
Most tariffs are ad valorem, except for many clothing products, to which either an alternative specific tariff of 19% or a corresponding alternative specific tariff expressed in dollars per unit—whichever is higher—applies. Tariffs on most imports from nonpreferential sources are 6–8%. The only tariffs over 15% apply to clothing and footwear (both 19%) and carpets (17.5%).
Under the terms of the ANZCERTA and the SPARTECA agreements, imports from participating countries that meet the respective preferential rules of origin enter New Zealand duty-free, while Canada enjoys a margin of preference. Eligible imports from developing countries are allocated tariff preferences. All goods that are produced in the 49 least-developed countries are granted duty-free access. Products imported from Singapore are exempted from customs tariffs.
State import monopolyNo.
Exports and Export Proceeds
Repatriation requirementsNo.
Financing requirementsNo.
Documentation requirementsNo.
Export licenses
Without quotasCertain items classified as strategic goods may be exported only when specific requirements have been met and an export permit has been issued. For conservation reasons, there are also restrictions or prohibitions on exports of various animals and plants.
With quotasYes.
Export taxesNo.
Payments for Invisible Transactions and Current Transfers
Controls on these transfersNo.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsNo.
Restrictions on use of fundsNo.
Capital Transactions
Controls on capital transactionsYes.
Controls on capital and money market instrumentsNo.
Controls on derivatives and other instrumentsNo.
Controls on credit operationsNo.
Controls on direct investment
Inward direct investmentUnder the Overseas Investment Regulations, there are separate authorization procedures for “nonland,” “land,” “farmland,” and fishing-quota investments, which apply both to new investors and to existing foreign-controlled firms. Nonland investments involving the acquisition of over 25% of the shares of a New Zealand company—and where the consideration exceeds $NZ 50 million or which involve the purchase of property costing more than $NZ 50 million, to be used in carrying on a business—are subject to a bona fide investor test. Established foreign-controlled enterprises also need approval for investments exceeding $NZ 50 million in areas unrelated to that consented to originally. However, since these investors were screened when they first invested, the procedure is straightforward. Under the Fisheries Act, a nonresident must obtain either an exemption or permission to acquire or to continue holding a fishing quota, an interest in a quota, an annual catch entitlement, or a provisional catch history. Foreign ownership of Telecom Corporation of New Zealand, Ltd., is limited to 49.5%.
Controls on liquidation of direct investmentNo.
Controls on real estate transactions
Purchase locally by nonresidentsFor foreign investment in certain types of land, the investor must undergo a bona fide test, and the investment must be in the national interest. Authorization is required for acquisitions of the following: land exceeding 5 hectares in area or where the consideration exceeds $NZ 10 million; islands or land containing or adjoining reserves, historic, or heritage areas; foreshore or lakes in excess of 0.4 hectare; and land containing or adjoining foreshore in excess of 0.2 hectare.
Controls on personal capital transactionsNo.
Provisions specific to commercial banks and other credit institutionsNo.
Provisions specific to institutional investorsNo.
Other controls imposed by securities lawsNo.
Changes During 2004
No significant changes occurred in the exchange and trade system.

    Other Resources Citing This Publication